Search Results for 'traders'
The Day After
Secondary stocks can often make huge moves if you know what to look for.
Tuesday was a great trading day for us at TheStockBandit.com. You wouldn’t know it by glancing at the market. The NAZ was up 3 points, the S&P was up 5, and the RUT was up 1. In fact, you’d probably think that Monday was a big day and Tuesday was rather quiet.
It’s funny how that often works, but it’s just a function of the kinds of stocks we trade. We like to trade the names which are a little more obscure. Occasionally we’ll trade the biggies like AAPL and GOOG, but they are so dominated by the big funds that it’s harder to know what’s really going on with those stocks on a given day, not to mention they rarely make big percentage moves (which is the best measure of a move). Furthermore, options play a huge role in how the big names move, and you can never be sure if a lasting move is taking place or if it’s just part of the aftermath from the shifting or unloading of a large position held by institutions. They make for good day trading stocks, but they’re not ideal for swing trading.
A Different Breed
The stocks we tend to play are a little more secondary. Yes, they move well and have plenty of volume (our minimum volume cutoff is around 200k/day avg.), but the moves tend to be cleaner (and usually much larger) than the bigger names and that means a huge difference to the bottom line by the end of the month!
These secondary stocks often catch some nice follow through moves on days after the market averages make a jump, which means that some of our best days actually come after a big market move. When other traders are looking to play “follow the leader” the day after a big surge, it brings more activity into the stocks we are often already positioned in. This makes for some nice account growth on days when the broader market may be pulling back or just catching its breath.
So, the next time you feel like you’re missing out on a big market move, don’t discount the possibilities for the next session! There are a ton of stocks out there poised to move if you will do your homework and just find them. Believe me, they are out there!
Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com
The Welcomed Return of Emotion
Man, this market has been boring. Up a few points every day it seems! The bulls took control back in the summer and they haven’t relinquished it since. The 4-month gain has been impressive, but it’s occurred in a very dull fashion without intensity.
On longer timeframes, the climb has been incredibly steady, but new buys along the way have been harder to find if you like to buy pullbacks. After all, about the only “dips” we’ve seen these past few months have been a few days of rest before the next wave of buying begins. Finding new buys for the most part has been like jumping on board a moving train like the one pictured at the top of this page – not easy to do.
That’s why this week has been so refreshing to see. Take Monday for example. This market was due for a good shakeout, and it’s already improving the trading environment for us short-term traders. Whether it proves to be a one-day wonder or if it’s the start of a little larger correction remains to be seen, and as usual I’m making no predictions. It will either end up being just a dip within the uptrend, or it will be the start of a change of character for this market. Either one is fine by me, I’m just glad to see a return of volatility and more important, EMOTION!
This has already been my best trading week of the month, thanks to plays like VSE. I noticed this energy stock over the weekend as it recently broke a lengthy trend line and since then has been stair-stepping higher. It had formed a bullish ascending triangle which looked ripe for a pop, and I went long at $23.00. Here are two looks at this stock’s chart, first the original chart given to members at TheStockBandit.com on Sunday night, and then a look at it today as it reached our Final Profit Target for a 14.78% Gain:
(Click for full size.) VSE was poised for a pop as the rebuilding process was already underway. We went long at $23.00 on Monday.
(Click for full size.) VSE wasted no time as it blasted higher by 14.78% in just 3 days to reach our profit target. I love to “Take the Money & Run!”As you can see, there are some great setups out there for the taking, and I think the recent volatility will only serve to create more short-term trading opportunities for those of us who are day trading and swing trading.
I’m excited about the market conditions heading into the end of the year, regardless of which direction things move. Just the fact that some emotion has again entered the equation will no doubt mean more chances to exploit profitable opportunities.
Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com
3 Ways to Improve Your Holiday Trading
Ahh, the holidays…..for me they evoke thoughts of family time, big meals, and lots of naps during football games on TV! The holidays mean different things to different people, but no matter which ones you celebrate, you’ll be wise to take into account the fact that holiday trading sessions may require some adjustments on your part if you want to pull some money out of the market.
(I’ll keep this short and sweet because you and I both probably have some in-laws waiting on us!)
Holiday markets can be strange. The volume is lighter and the moves are just different. There’s fewer participants (reflected by lighter volume), and that means the market will often move differently than usual.
Let’s look at 3 ways to quickly adjust your trading approach for success during the holidays:
1) Shorten your timeframes. Light-volume markets are prone to reversals, so don’t be afraid to take quick profits into an initial move……those profits might disappear before you know it!
2) Go where the action is. Lately it’s been China-related stocks. But whatever the theme du jour is, locate the high-volume movers which are showing a change of character. Momentum traders will flock to the handful of stocks which are moving well during range-bound markets, so your best bet is to find those stocks and focus on trading them.
3) Don’t trade at all! (We often forget that this is an option!) Take a break from the market and come back when everyone else does. Spend some time with family. Scratch some items off that to-do list (did someone say “rake leaves?”). Rest up and recharge so that when you do return, you’ve got a clear head. Getting away from the screens is never a bad idea, and the chances are that you’ll come back better than you were when you left.
Whatever changes you make during these times, I wish you the best! Happy holidays from TheStockBandit.com!
Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com
The 2nd Worst Feeling in Trading
It’s no big secret that psychology plays a massive role in how the market moves. Fear and greed are driving forces which are always at play. How fast and which direction the market is moving is simply determined by the amount of these 2 equally powerful emotions.
In recent weeks, the bulls have gotten flat-out greedy! They have been unwilling to sell, and with the market pointing sharply higher off the summer lows, it’s no big surprise that they are feeling this way. Momentum is clearly on their side. Every dip is being bought, and that only perpetuates the cycle as traders get more confident with every dip that they can put cash to work and catch a ride higher.
During the same time, the bears (and underinvested bulls) have been fearful. With every uptick there comes a concern that the market may never look back. As a result, there has been steady buying pressure with underinvested bulls throwing cash at the market while the bears run to cover their shorts every time a pullback ends and things again turn green.
So how does this all tie in with the 2nd-Worst Feeling in Trading? Well, it’s pretty simple. We’re all in agreement that the worst feeling in trading is losing. Losing is no fun and downright painful! But when it comes to the 2nd worst feeling, I’d have to say it’s missing out.
When the market blasts higher and you’re sitting on a pile of cash, it’s a frustrating feeling. You see stocks on the move which aren’t on your screen, and the continual question you ask yourself is “why am I not in that?”
The move in EFUT this past week has been a perfect example, but honestly it’s pretty difficult to buy anything after say, a 200% move in a few days! So why beat yourself up over not catching it?
Trading leaves none of us immune to these feelings of missing out, but keep 2 things in mind going forward:
1) If you’re not catching a big move, the 2nd-BEST thing is to not be losing. Basically, it could be worse if you were actually fighting this uptrend.
2) Opportunities are FAR easier to make up than losses. If you aren’t seeing what you want to see, don’t sweat it. Take a break. WAIT for the setups you love before committing capital to the market.
I’m staying pretty selective right now with new entries. I am jumping into trades as I see them emerge and booking profits on the way up in pieces. Hitting singles can definitely get you into the Hall of Fame! But when no trades really “jump” out at me from the charts, I’m sure not forcing any new entries.
If you’re interested in seeing how I’m trading this market right now, stop by today to start your free trial. Our trading community has exploded this year as more and more traders realize the value they get from a membership at TheStockBandit.com, so why not come see for yourself?
After all, missing out is no fun!
Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com
Trading Multiple Positions
Brand new traders are best served by sticking to one trade at a time, but as a trader gains experience, there are certainly some advantages to trading multiple positions.
One of the biggest benefits of swing trading multiple positions is that it diminishes the importance of any one trade. No longer will that one trade define your success (or lack thereof) in the short term. This is a big psychological edge which can set you free mentally as you aren’t required to watch and react to every single tick on your pet stock. You can set your conditional orders and let the trade develop on its own without micromanaging it, and in the meantime you’re able to scan for new stocks you may soon want to trade.
If you’re a beginning trader, you’re probably better off taking one trade at a time so that you don’t get overwhelmed. Trading the market takes some getting used to, and that learning curve shouldn’t be rushed. Take your time and go at a pace which you’re comfortable with as you learn to improve your execution methods and develop a routine for monitoring the market.
Once you’re past the beginning stages as a trader and comfortable with your executions, I would encourage you to learn to trade multiple stocks even if you have a relatively small account. While focusing your funds in one stock will mean an opportunity to accelerate account growth, spreading your capital too thin can doom you to underperformance. Find a middle ground which will give you the best of both worlds. And when the time comes that you can’t find trades which fit your risk/reward profile, simply step aside and remember that cash is a position!
We trade multiple positions on a regular basis over at TheStockBandit.com. If you’d like to learn more about how we manage them, come check out the free trial and watch us for 2 weeks. We’re confident you’ll like what you see.
Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com
How Competitive Are You?
Trading is as competitive of an environment as you’ll find anywhere on the planet. With millions of participants, literally trillions of dollars at play, and some of the brightest minds on earth manning the front lines, you’d better show up with your game face on if you want to win in this game!
I’ve been watching the Soul of a Champion series on the new Versus network (formerly OLN), and it is awesome. It stirs up emotions within me every time I watch and hear these stories of great champions in their respective sports. Their drive to succeed and the road which took these athletes to the level they are at is pretty inspiring.
How competitive are you? How driven to achieve your goals are you?
Whether we’re talking about trading or something different on a personal level, you’ve got to have goals in place in order to have a direction each day. How bad do you want it? How hard are you willing to work? What are you driven to achieve? These questions are constantly in front of us as we check our progress, and I think they’re healthy and motivating questions to continually ask ourselves as traders. Ignoring them would be a mistake.
I’ve found that hard work not only improves my skills, but it’s an ongoing source of confidence, which is a requirement for trading. Doing my homework and constantly reviewing my results adds to my confidence level in each trade I make. To put cash at work when there’s an element of fate involved that may be out of your control (like trading), it does take confidence. I set my goals high and I hope you do too!
Set the bar high for your trading. If you want to see how we’re managing trades in this market environment and find an added element of confidence, come take the free trial and see what we’re all about. Our growing community offers a lot of tools to help you reach your trading goals, and we’d love to trade with you!
Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com
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Look Out IB!
CyberTrader just put up this page which points to some pretty exciting enhancements on the way for clients on the CyberTrader Pro platform (like yours truly).
I’ve commented quite a bit about CT and their great customer service and particularly their wonderful conditional orders. Well, the coming enhancements will add quite a bit of functionality to the conditional orders topic, particularly #4 on the list.
Needless to say, CT is about to take not only trade management but order management to another level with the coming features, and that means more flexibility for traders which is always a great thing!
I’m really looking forward to this and you can see the list at this page.
Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com
[tags]Stock Trading, CyberTrader, Conditional Alerts, Conditional Orders, Risk Management[/tags]
